Luna Foundation Guard Releases Audit Report, Saying All Funds Were Used to Defend $UST's Peg Instead of Being Embezzled

The Luna Foundation Guard (LFG) released a technical audit report conducted by JS Held, a third-party auditing firm, to provide transparency into the peg defense activity by LFG and Terraform Labs (TFL) between May 8th and May 12th.

LFG said, "to aid with the audit, JS Held was given access to on-chain wallets and trading accounts at CEXs used by the peg defense, and worked with primary raw data instead of relying solely on TFL’s representations. No compensation paid to JS Held was conditional on positive findings."

The report concluded that LFG spent around $2.8b (80,081 $BTC and 49.8m in stablecoins) to defend $UST's peg, and TFL spent $613m of its own capital to defend $UST peg. All LFG funds were spent to defend UST's peg parity with the dollar as declared, and LFG's remaining balances are the only funds remaining.

LFG claimed that the result dispels the following allegations: LFG funds were misappropriated, embezzled or stolen; LFG funds were used to benefit insiders; LFG funds were frozen by law enforcement.